Manny Kagan

When I came closer to the small farmhouse, a little dog with a heavy chain ran toward me loudly barking. We were exploring different areas about an hour drive from Havana, and stopped for lunch in an off the road farm area. The “restaurant” was an old building with a large porch in front and a long communal table. While everyone settled down, placed their order, and photographed a chicken with her chicks that came to feast on the scraps from the table, I ventured into the farm. An older man alerted by the dogs barking came out from the house. I greeted him and he showed that there is more to photograph in the backyard. The scenery could have been similar to any farm anywhere in the world. The rotten shed with the chain on the wall, laundry outside with a Nike t-shirt hung over a broken motorcycle. There was a barn with a locked door and its content revealed through the gap by my curious camera lens; a ladder leaning on the small house, and a rooster proudly checking his territory.  When I turned around, I saw the owner in front of a red VW minibus without wheels. When he came closer, I photographed his close-up portrait.

Then, I heard an angry woman’s voice. There, in a small window at the back of the house, was a woman with only two teeth sticking out from her mouth. For me, it was a perfect photo opportunity, but despite my requests she refused to be photographed. Since I can only say a few words in Spanish, it did not help much. So I decided to bribe her. I ran back to our group where I had some give-away goodies in my bag. But when I returned with a bar of soap, she refused to take it. Meanwhile, everyone gathered on the little porch and the dog started to bark again.

There I did something which was natural for me, but probably not expected. I sat down on the ground in front of the dog. One of the rules of photography is to get on the same level when photographing animals and children and to always focus on their eyes. The dog calmed down and went back to his barrel.

But something else happened. I no longer saw an old woman, but a beautiful person. This energy transformed both of us. I turned around and had no problem photographing her. She allowed me to create her portrait, wanted to be photographed with her husband, and then asked him to photograph me and her together.

I had to go to eat my lunch and promised to come back with the interpreter. After we returned, the woman told my friend, who spoke Spanish, about her life and said that she loves me and asked her husband to give me their address requesting that I mail them the photos I took. We continued our journey. After the encounter, I photographed hundreds of other people, but when I reviewed the photos from my trip on my computer and saw the woman, a warm feeling filled my heart and I wanted to share this story with you.

Now I would like to interpret how these photos relate to my book “The Mortgage Game: The 5 C’s and How to Connect Them”, where I share my life and my clients’ stories. To see the connection, just follow my photos:

Clients anxious about their ability to get a loan complain about their circumstances, lenders,  and appraisers–(bark like this little dog).

Borrowers (chicks) rush to get mortgages with low rates brought to us by the Federal Reserve (the chicken), under the watchful gaze of the government regulators (the rooster, ready to step in at any moment).

“A woman is the full circle. Within her is the power to create, nurture, and transform.”–Diane Mariechild

It is pure coincidence that this email appears on March 8^th–the International Day of Women celebrated in the former Soviet Union. When we were in Cuba, we heard that there were going to be elections on the following day. Since we did not watch local TV, or read Cuban newspapers, we had no clue that this was happening. Some tourists we met commented that not much is expected to change. I promptly forgot about this until on February 13^th when I was back in San Francisco, and read an interview with retired Cuban President Fidel Castro in the S.F. Chronicle. Castro is 86 and ailing. In the article I read, “…he applauds the Cuban People for electing more women than men in the 612-sect National Assembly”. This really struck me. How much would have changed?

The former Guerilla leader is applauding that women have gotten more power in the government. The change is not only in Cuba. There are 97 women currently serving in the 113th US Congress compared to the 90 that served during the 112^th US Congress. I feel that these changes will help shift the overall energy to making the world a less aggressive with a more consolatory female touch. Nevertheless, according to the article in the S.F. Chronicle on March 1st , Carly Fiorina, who was CEO of Hewlett-Packard in 1999 and the first woman to run a Fortune 20 company, sees a double standard.

When it comes to the mortgage business, it seems it is still run and controlled by the rigid standards set by men. Many of my female clients have been challenged to refinance their mortgages primarily because of a lack of verifiable income–despite the fact that they consistently make their mortgage payments. Some, who are self-employed, like beauty professionals or consultants, were able to get stated income loans in the past. Those programs are mostly gone. Some borrowers try to modify their loans to lower the rate. What borrowers do not know is that banks cannot modify existing loans until borrowers stop their mortgage payments. Some loan originators in the banks give borrowers unofficial advice to stop payments to enable a modification.

First of all, there is no guarantee that the modification will take place; meanwhile, there is a risk that the bank will foreclose, (though there is a new rule that forbids banks to start a foreclosure during the application for a modification). In any event, the real problem is that if borrowers will have late mortgage payments, and their credit score will be affected. Since not only mortgage companies, but also many other entities like insurance companies, car loans, home rental agencies, and even employers check consumers credit, a low credit score can be a big liability.

Unfortunately, the only solution is to have a paying salary high enough to qualify for a loan, which is obviously a “Catch 22” with the high unemployment rate in California and the effects it has on women, as was explained in “Job cuts hitting women harder“, which appeared in the S.F. Chronicle on March 1st. Sometimes co-signers can help to get qualified for a loan. However, in some cases it is better to sell a home if it is possible and rent instead for lower monthly payments.

I write more about this situation and the solutions in my forthcoming book,“Mortgage Solutions for Smart People: 5 Easy Way to Get a Loan”. If you need assistance, I know two powerful women who can help you–Ildiko Pali, who is a realtor and a short sale specialist, who can be reached at 415-923-7628 /ildiko@princeton-realestate.com

If you are seeking a good person to help you with your tax issues, I recommend contacting Elizabeth Shwiff. She is the head of the CPA firm, Shwiff, Levy & Polo, LLP and can be reached at (415)291-8600 /elizabeth@yoursrvc.com

P.S.

I travelled to Cuba with my “power woman”, my wife Elfa. We have been married for over 45 years and are partners in our business as well. She is also a talented artist and primarily paints and draws portraits. While she never expressed a strong interest in practicing the art of photography herself, through the years she has helped me work on my images with my photography software. Before our trip, I gave her a crash course and with my small pocket camera, she bravely followed me on our journey. In our past travels, she did not enjoy my frequent stops to take photos wherever we went.

Now…I had to wait for her.

Not only has she overcome her shyness and started asking people to photograph them, she was taking close-ups! After a few days, she told me that this year I will not have difficulty to find her a birthday present. A new photographer is born. Other than the one below when I caught Elfa in action, the great portraits in this email were taken by her.

P.P.S.

Are you coming with us to the Havana Jazz Festival on December 15-23^rd of this year? Our group is growing. There is a limited number of participants. Last year, it was sold out. There are many other trips every month you can find on Cubaexplorer.com Those trips require specific legal documents and preparation. Please let me know if you cannot join us in December, but want to go a different month. I can help you with the paperwork. If you want to get great travel photos, I will teach you how–just join us on the trip to Cuba in December.

Seek for seeds of victory in every defeat.”–Chinese Proverb

At the end of my last email, I wrote about our next trip to Cuba and invited you to join us. What has happened is that you received the draft before the final version–thus you discovered the secret of my “Good News” email production.

Usually, I pick up an idea or read about something that I think might interest you. Then I write it by hand on the back of recycled paper (to save trees). Sometimes, I do it after work at home, or in a coffee shop, or even when I get inspired on the napkins in restaurants. Sometimes, I rewrite it with more current ideas, especially related to mortgages.  My assistant, Samantha, types out my scribbles, I check and make corrections, and it is emailed to my daughter Tamar who lives in L.A. She is a good writer and makes stylish grammar recommendations. Then, I choose photos to support the weekly theme. Samantha puts everything together and every Friday morning you are sent my “Good News”.  

Since I wanted to bring your attention to our trip to Cuba, this gives me an opportunity to email you again with the corrected revision:

After browsing through the Smithsonian magazine, my wife Elfa, asked me if I want to go to Cuba again and I immediately said, “Yes!”, but it is pricey.  I also remembered that awhile ago I saw a website talking about jazz trips to Cuba. On the web, I found cubaexplorer.com, an organization located in Vancouver, Canada that offers educational tours to Cuba and has many monthly trips including one for 9 days this year, on December 15-23. You can find more information at jazzcuba.com.

Will you join us? My list is growing. I already have 10 referrals and each has their significant other and friends. Let’s have fun together!

Now let’s talk about mortgages.

Let me share with you how we recently helped Rachel refinance her loan and the screw-ups we had to deal with. Mistakes are often a result of misinformation. Rachel worked for a non-profit organization that helps sick people whom she visits during the day. In 2010 and 2011, she was able to use her job related expenses to lower her taxable income by filing an IRS 2106 form. In 2012, she changed companies and her new employer reimburses her for the expenses, which then increases her take home income.

When we submitted her loan to a lender, it was turned down because of the “losses”–deductions based on the IRS 2103 in the previous two years. Her new paystub showed that she received reimbursements, but we did not yet have her 2012 tax returns. In my book, “The Mortgage Game: The 5 C’s and How to Connect Them”, I write that the mortgage industry lost the 6^th C–Common Sense. Knowing the problem, we discussed it with another bank and were assured that it would not be a problem. Guess what? The loan was declined again. We did not despair and since as mortgage brokers, we can work with many different banks, the loan was submitted to a third one–and this time it went through. I describe many stories and solutions like that in my new forthcoming book “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”.

P.S.

Someone asked me if there are many bicyclists in Havana. I did see and photographed a few but not as many as in some other countries. But there are many three-wheel, two seater taxis, pedaled by very friendly tricyclists.

P.P.S

I am not sure if you care very much, but I misspelled the name of the Venezuelan president, his name is Hugo Chavez. Since my email, he has returned to Cuba, and still has difficulty to talk; but, it was also reported that he requested his diplomats to seek the ways to improve the relationship with the United States.

Is Cuba next?

“The slower you drive, the farther you get.”–Russian Proverb

Last week, I wrote about life in Cuba, which as I’ve noted, is “complicated”, as well as how getting loan approval in the U.S. can be complicated as well. By law, Cubans cannot buy a new car, or have a mortgage. There is a shortage of housing, and many people in Havana live in challenging conditions. Many families share old, beautiful, but dilapidated buildings, each occupying one room with very few amenities. This reminds me of the way we lived in Riga, Latvia during the former Soviet Union.

The majority of people work for government owned enterprises and are paid in local currency, the National Peso, which they can use in stores with limited supplies and empty shelves. There is also the Convertible Peso, known as the CUC and commonly referred to as “kooks, to tourists. The US Treasury department doesn’t allow Americans to buy anything in Cuba, but tourists from other countries do not have these restrictions. There are better stores, which sell products and merchandise in CUC, which are also used by foreigners in the hotels and restaurants. There are 24 pesos to a CUC. Our travel guide told us that her monthly salary is enough to buy food for a week. Thanks to the tips that she receives in CUCs, she can afford more.

Cubans also get subsidized vouchers for special rationing stores which exchange vouchers for meat, fish, and bags of rice. Hugo Shaves, president of Venezuela, who is currently hospitalized in Cuba, is considered a friend and benefactor. I photographed his poster in one of those stores. There is also a popular barter system. A ballpoint pen that a person might receive as a gift from a tourist, can be exchanged for something else, and after a number of transactions, that person might end up as a piece of chicken for dinner.

On the streets of Havana, one can see many newer cars that are owned by various government agencies, each with differently colored license plates to distinguish who is who, as well as old American ones, some in very good condition. Those cars are privately owned since they were purchased before 1959. They have yellow license plates and often serve as taxis. To get around, Cubans and tourists can hire a two-seater motorcar or rickshaw-like bicycles. The problem with owning a car in Cuba is the same as it was in the former Soviet Union–the lack of spare parts. In my book, “The Mortgage Game: The 5 C’s and How to Connect Them”, I wrote that car owners in the Soviet Union, as well as home owners in the US have two joys in their life–when they get a new car/mortgage and when they get rid of it.

Cubans are very clever at fixing those old beauties with parts from other cars. Cuban life can be really complicated. Seeing their challenges brings to mind the saying “One cries for the lack of shoes, until meeting the person who does not have legs.” If next time you want to complain about anything in your life, just find a group traveling to Cuba.

American car owners might have different problems. In my new e-book that I am currently writing, titled “Mortgage Solutions for Smart People: 5 Simple Ways to Get Your Loan”, I discuss an issue of how to lower high qualifying ratios.

Car payments, like student loans and mortgages are called installment debts and are part of the second qualifying ratio, and in most cases cannot exceed 45% of one’s income, which also includes other obligations resolving debts like credit card payments. What most borrowers do not realize, is that if the ratio is over 45%, the loan request is going to be declined. In my book, I offer different ways on how to improve the chances and at the loan approval, steps to eliminate a lot of unnecessary headaches. One piece of advice that I give–never co-sign for other people’s car loans, unless you are willing to make the monthly payments yourself. One of my clients learned this lesson the hard way. After the son of his girlfriend to whom he helped buy a car, missed two payments, my client’s credit score dropped over 50 points and I could not help him lower monthly payments by $250. Car owners’ life in the United States can be complicated as well.

P.S.

Before my trip to Cuba, a friend asked me to photograph American cars on my trip. You can see some of them in this email. Since I do not photograph objects but life on the street, these images might give you an additional view of Havana. When I have time to put together a website dedicated to Cuba, you will be able to see more images including more cars.

P.P.S.

A few days ago, we received the Smithsonian Travel Magazine in the mail. They offer many great trips including a new one to Cuba. We met tourists at our hotel who were visiting Havana on a National Geographic Tour. Our trip through the Santa Fe Photographic Workshop was the best way to travel to Cuba for those interested in photography. (The one in April is sold-out.) The cost of those three companies (including a flight from Miami, FL) varies between about $4,000 to $6,500 per person.

After browsing through the Smithsonian magazine, my wife Elfa, asked me if I want to go to Cuba again and I immediately said, “Yes!”, but it is pricey.  I also remembered about the website talking about Cuba and jazz trips. On the web, I found cubaexplorer.com, an organization located in Vancouver, Canada that offers “Cuba Educational Tours” and has many monthly trips including one for 9 days on December 15-23, as part of the Havana Jazz Festival. The cost (including air fare from Cancun, Mexico) can be about $2,100 per person. Check out jazzcuba.com.

We Are Going.

I joined their Club Cubano and for each referred guest, they offer $150 discount. After 10 of my friends will join, my daughter can come for free. When we will have a group of 25, we can have our own bus and travel together. Are you joining us?